For any online retailer, returns are a nightmare. Tricky to process, often involving “discussion” with the customer and, of course, a complete black hole into which profit margin vanishes.
Not all is lost, however, and with an effective stock control management system, losses can be mitigated. By addressing issues promptly and efficiently, customer relationships can be maintained and even strengthened.
While examining the issues associated with returns, it is essential to recognise the significant differences in processing difficulty and the severity of the problem across various retail sectors. The matters in stock control management of returns have different implications for individual sectors. The issues in consumer electronics stock control may differ significantly from those in the fashion industry, but an effective stock control management system can yield substantial savings.
To start with, in many sectors, returns will arrive at the warehouse unannounced, having been sent by the customer without prior notification. The initial problem is to quickly identify which product from which customer so that appropriate action can be taken. A stock control system that can locate these items instantly through barcode scanning, saving a considerable amount of time. If the business uses return notes to identify the reason for the return, then this information must be recorded before the documentation is lost or becomes separated from the product. If appropriate, the customer’s outcome request needs to be recorded in the stock control system at the same time, bigger/smaller size, different colour, another product or refund, or in some cases, return of the item to the customer as used, damaged or other outcome, all need to be catered for. All this before the product itself has even been looked at! However, recording this information will enable customer services staff to promptly carry out the customer’s wishes and take the correct action, thereby avoiding any lasting complications or delays.
Regarding the product itself, each sector (or even each customer) will have its method for handling returned products. It’s usual to put the product through an inspection process in all sectors however and in some industry identifying that the product itself if as despatched to the customer which is where the option of batch or serial number tracking capability for high value products is so important on the stock control management system to ensure that the return isn’t a stolen, or out of warranty item.
Once the item is identified, a condition assessment can be made and recorded on the stock control system. Options may vary from returning to stock, repacking and returning to stock, returning to the supplier, returning to the customer, quarantining the item for sale through a B-grade stock disposal process, or, in the worst cases, scrapping the product. In each of these cases, the stock control management system needs to capture the requirements, document the product and take appropriate action.
If the product is to be resold with a defect as B grade, then a judgment needs to be made as to the level of price reduction and in many cases, the reason for the product being B grade is recorded so the product can be sold through other sales channels and correctly described.
In many product sectors, a stock control management system that can manage all these functions will have a significant impact on the overall profit margin. Being able to manage each function efficiently with accurate data collection, preserve product value, and handle customer services effectively without incurring excessive time can yield significant benefits.
The Cyrane Order Management System has all functions for effective Stock Control of returns integrated within the system. To find out more about how a Cyrane Order Management System might benefit your business and how all its stock control functions operate, contact us today to arrange an initial consultation.